The new dominion. [volume] (Morgantown, W. Va.) 1876-1904, 1887-09-10
THE B. & o. REVOLUTION.
1t Will go Into the Hands of a
New Management.
A $40, 200, 900 Loan Negotiated which
Means Change i'm its Policy.
President Robert Garrett Will Retire.


600 of Baltimore q Ohio bonds and
stock to pay off the floating debt OF
the company, and for placing the
management Of the company in
hands satisfactory to the syndicate.
The Associated Press statement OF
the transaction as wired from New
York last night is as follows;
after long conference of CAPT.
talists at the office of Drexel, Nor
gan & Co., the following was issued
to-day by the firm of Drexel, Nor
gan d Co.:
"A preliminary contract has been
executed to-day between the Balti.
more d Ohio Railroad Company
Barring Bros. d Co. and Brown, Ship
ley d Co., London, and their allied
houses ON this side This contract
provides for the negotiation OF
So, 100000 B. d o. consolidated fives,
100000 b. d o. preferred stock,
for the purpose of paying off the en-
tire floating debt of the company
and placing it on a sound financial
basis. The conditions are as fol
lows:
First. The veriflcation of state
ments, etc, as made.
Second. That the management OF
the company shall be placed in COM
petent hands satisfactory to the syn
dictate.
Third. That satisfactory con-
tracts shall be made between the
Baltimore q Ohio and the other
roads for New York business which
shall remove all antagonisms be-
tween them on the subject, and in
sure the permanent working of the
Baltimore d Ohio in entire harmony
with the other trunk lines; also
avoid construction or threat of con
struction of expensive parallel lines
north and east of Philadelphia. The
houses interested on this side are
Drexel, Morgan q Co., Drexel q Co.,
Brown Bros, and Kidder, Peabody
q Co."
Ever since Garrett wrote his letter
to Mr.. Singerly, editor of the Record,
of Philadelphia, breaking off the
Ives negotiations, he has been work
ing to save his Baltimore d Ohio
road. The negotiations were contin-
ued by him with J. S. Morgan on his
arrival in London, and to-day an ar
rangement was announced that is
only equaled by that of the West
Shore settlement with the New York
Central and the forming of the Read
ing syndicate to reorganize that
company. Both of these deals were
carried through by Drexel, Morgan
d Co. Edward Lauterback gave a
legal option to-day upon the ques-
ton whether the sterling loan made
by the Baltimore & Ohio railroad
covered the telegraph system of the
company. He decided that the tele-
graph lines were free from all liens,
and on receiving this opinion the
agreement in the nature of prelim-
mary contract was executed. The
parties to the contract are the Bal
timore d Ohio Railroad Company
and syndicate composed of J. S.
Morgan q Co., Barring Bros. d Co.
and Brown, Shipley d Co., of Lon
don, Drexel, Morgan Il Co., Kidder,
Peabody &>Co. and Brown Bros. d
Co., of this city. and Drexel & Co.,
of Philadelphia. The most import
ant point in the contract provides
that the management of the company
shall be placed in competent hands
satisfactory to the syndicate. A. J.
Cassatt, former President of
the Pennsylvania Railroad, and now
President of the New York, Phila-
delphia and Norfolk Railroad, is
generally believed to be booked as
CARROTS successor Satisfactory
contracts are also to be made with
the Pennsylvania and Reading Rail
roads on all business north of Phila-
delphia and with all the other trunk
lines entering New York, by which
all antagonism will be removed and
insure the permanent working of the
Baltimore d Ohio in harmony with
the other trunk lines. In addition
to these contracts, the line in process
of construction from Philadelphia
to New York will be suspended and
the work on Staten Island stopped.
In consideration of these contracts
being signed and with the control in
their hands, the syndicate agrees to
relieve the railroad from its present
embarrassment by providing $1O,-
100000 with which to take up the
floating debt. This will be repre-
sented 100000 in Baltimore and
Ohio consolidated IS and $4,000 900
preferred stock. The floating debt
as it stands amounts to $1,000, 900,
mostly in the shape of certificates of
Indebtedness, scrip and notes. Of
this amount 100000 is said to
have matured on the first instant,
and was the chief factor in bringing
about the present result.
One of the parties to the syndicate
says ''All the outside enterprises of
the Baltimore Il Ohio Company will
be sold to parties to whom they will
be valuable. The Western Union
will control, If it does not buy, the
telegraph lines, and the Pullman
Palace Car Company will take the
sleeping car business. The express
business has already gone to the
United States Express Company.
The affairs of the railroad company
will be entirely reorganized and
placed upon a sound financial basis"
The clause of the contract sus-
pending all work on the extension
from Philadelphia to New York is
believed to be the keynote of the
syndicate's interest in the negotia-
tions, and is construed to mean that
the Baltimore Il Ohio Railroad when
Invested of all extraneous enterprises
will be operated practically by the
Pennsylvania Railroad.
Give Them Chance.
That is to to say, your lungs.
Also all your breathing machinery.
Very wonderful machinery it is.
Not only the larger air-passages, but
the thousand little tubes and cavi-